US CFPB reaches settlement with FirstCash for alleged Military Lending Act violations

July 11 (Reuters) - The U.S. Consumer Financial Protections Bureau has reached a settlement with pawn shop chain owner FirstCash Inc and its subsidiaries for alleged violations of the Military Lending Act, the consumer watchdog agency said Friday.

Under the settlement agreement, which requires court approval, FirstCash would "set aside $5 million to ensure full redress to harmed servicemembers and their family members in connection with thousands of unlawful pawn loans," the CFPB said in a statement.

FirstCash would also pay a $4 million fine and comply with the Military Lending Act, the CFPB said.